How to Determine If Bankruptcy is a Viable Option Tax Relief For ...

Most taxpayers do not realize that

IRS tax debt may be eligible for discharge in bankruptcy. Record numbers of people filed bankruptcy last year because they lost their jobs or they lost their pension or maybe had a catastrophic life event that then caused their financial world to fall off a cliff. Sometimes bankruptcy is the most tax relief Appropriate course of action when you have a big IRS tax problem. And other times it?s not-and something like the Offer in Compromise program may be a much better option than bankruptcy tax relief.

Bankruptcy is an option used by the world?s biggest businesses as well as the humblest individuals. Obtaining tax relief through bankruptcy can give people a fresh start. Some people may think bankruptcy is a way to sneak around the system, but not the purpose is actually to level the playing field that Sun can permanently resolve their tax people problems once and for ave

Bankruptcy does always remove all tax liabilities. Not all IRS taxes, penalties, interest and qualify for complete 100% discharge. In order for a taxpayer to benefit from bankruptcy laws, it is important to get expert tax help from IRS tax attorney or Certified in Tax Resolution Specialist to Determine whether or not your tax liabilities are eligible for discharge.

If You Qualify for discharging your tax liabilities through bankruptcy, you can get massive tax relief from the government.

However, only a seasoned tax attorney, CPA or Certified Tax Resolution Specialist Can Provide tax help to show you the proper sequence of events to declare bankruptcy and completely eliminate all of your back taxes, if you are eligible.

In October 2005, Congress enacted the Consumer Bankruptcy Law ? including big changes that affect the ability to discharge income taxes. Therefore, it is highly recommended that the taxpayer seek out experienced legal counsel from a tax attorney or Certified Tax Resolution Specialist who specializes in tax relief bankruptcy. Before you get started down the path of tax relief bankruptcy, here . are a few tips

Bankruptcy Tax Relief Tip # 1: Does your debt Consist of taxes, or everything but taxes?

Sometimes bankruptcy is the most tax relief Appropriate course of action when you have a big tax problem. And sometimes it?s not. The first test to see if bankruptcy will give you maximum tax relief is to start with the question ?What is your biggest problem? Is it everything BUT taxes, or is it the taxes?? If you have lots of creditors that you are having trouble paying, bankruptcy may be your best option. If your only major creditor is Uncle Sam, a tax attorney or Certified Tax Resolution Specialist can help you consider additional back tax relief options like an IRS installment agreement that may be a better fit Depending on your exact circumstances and the tax relief solutions you qualify for .

Bankruptcy Tax Relief Tip # 2: Get the maximum tax debt forgiveness with the right kind of bankruptcy.

There are three types of bankruptcies:

Chapter 7: Chapter 7 is what everyone wants. Chapter 7 is total tax debt forgiveness, wiping out everything. The bankruptcy laws changed a few years back. These days you have to get your tax attorney or Certified Tax Resolution Specialist to petition a judge to grant Chapter 7 There?s now a financial means test that mirrors very closely the test for the IRS Offer in Compromise program. A financial means test means that you have to prove you can not pay. Your assets are Significantly less than what you owe. You do not have to be destitute, but if the tax debt is so massive Compared to your assets that you?re upside down or become insolvent, then that?s obviously a key test to be a candidate Chapter 7th Chapter 7 is complete forgiveness. It wipes off the plate. And that?s called discharge. You want the discharge to get totally tax debt forgiveness. If Chapter 7 is not possible ? and bankruptcy tax attorneys have to be a lot more rigorous than they had been around this in the past ? the bankruptcy tax attorney is supposed to then submit a petition for a Chapter 13

Chapter 11: Chapter 11 is Primarily used by businesses as a form of a business reorganization that Allows you to negotiate with your creditors to restructure debts that Sun can emerge from bankruptcy your business with a sustainable debt load. If you are self-employed and / or incorporated, consult with a tax attorney or Certified Tax Resolution Specialist about how you can use Chapter 11 of tax relief and debt relief to make your business stronger.

Chapter 13: A Chapter 13 is basically a structured payment plan. It?s called a Wage Earner Plan. It is very similar to the Offer in Compromise program, but gives you a big hit on your credit report for the next 10 years

Bankruptcy Tax Relief Tip # 3:. Know when bankruptcy is a better option than an Offer in Compromise.

The IRS?s Offer in Compromise program is a fresh start program, and sometimes it?s a much better option than bankruptcy. In many instances the tax obligation can be reduced, without the burden of a bankruptcy on your credit report for the next 10 years. So it?s important to consult with a tax attorney or Certified Tax Resolution Specialist to discern the different tax benefits of debt solutions for your case

Bankruptcy Tax Relief Tip # 4:. Business bankruptcy is different from personal bankruptcy.

Many people have incorporated self-employed as a business. Incorporation provides you with protection from personal tax debt. Depending on the laws in your state, you can simply declare bankruptcy and dissolve your corporation with no impact on your personal credit history. p> Bankruptcy is sometimes the best option, but it will haunt your credit report for the next 10 years. When there are not any other significant debts to IRS tax attorney or Certified Tax Resolution Specialist can help you reduce your tax obligation through Significantly less drastic means. But if you go down the bankruptcy path, take heart. In many cases, people can reestablish their credit history in as little as two years.

id=?article-resource?> Michael Rozbruch, one of the nation?s leading tax experts, is a Certified Tax Resolution Specialist (CTRS), licensed CPA in the state of Maryland and the founder of Tax Resolution Services. He teams up with an expert staff of tax attorneys, CPAs, and tax relief professionals available to help individuals and small businesses solve their IRS problems with tax liens, unfiled back taxes, offers in compromise, wage levies, tax relief, delinquent returns, tax debt installment plan, bankruptcy and protecting an innocent spouse from unfair tax burdens. Michael also shares valuable tax advice and information in his blog-Tax Resolution University. For more information on how to resolve your back taxes and IRS bank levies remove, visit http://www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS. ?

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